A company reporting “top-line growth” is experiencing an increase in either gross sales or revenue or both. In accounting, the term sales refers to the revenues earned when a company sells its goods, products, merchandise, etc. Accounting software can help you stay on top of your small business’s day-to-day financial transactions. Among the ones included in […]
Category: Bookkeeping
That’s why, to find your operating expense ratio, you need to divide your total operating expenses by your total revenue. However, variable expenses affect the business more daily if they’re directly related to your sales volume. Along the manufacturing process, there are specific items that are usually variable costs. For the examples of these variable […]
The total of all of the cash disbursements for the month would be recorded in the general ledger Cash account (Figure 7.27) as follows. Note that the information for both the cash receipts journal and the cash disbursements journal are recorded in the general ledger Cash account. The information in the sales journal was taken […]
However, while the direct write-off method records the exact amount of uncollectible accounts, it fails to uphold the matching principle used in accrual accounting and generally accepted accounting principles (GAAP). The matching principle requires that expenses be matched to related revenues in the same accounting period in which the revenue transaction occurs. This method is […]
This content outlines initial considerations meriting further consultation with life sciences organizations, healthcare organizations, clinicians, and legal advisors to explore feasibility and risks. Using Q&As and examples, KPMG provides interpretive guidance on consolidation-related accounting issues in applying ASC 810. It has subsidiaries around the world that help it to support its global presence in many […]
With advances in technology, it is easier and less tedious to record transactions, and you no longer need to maintain each book of accounts separately. The person entering data in any module of your company’s accounting or bookkeeping software may not even be aware of these repositories. In the majority of the software applications, your […]
This example indicates that 60% of total business costs are related to finance. Hence, the direct labor cost of the company will be the sum of these two costs. As an example, let’s calculate the annual labor cost of Jessie, a full-time employee with an annual salary of $42,000. She has a diverse background in […]
A given company can add accounts and tailor them to more specifically reflect the company’s operations, accounting, and reporting needs. The primary disadvantage of the double-entry accounting system is that it is more complex. It requires two entries to be recorded when one transaction takes place. It also requires that mathematically, debits and credits always […]
Doubling the rate (a 200% deduction) would mean that 20% ($2,000) would be depreciated each year, so the asset would be fully depreciated in five years rather than 10. Amortization is an accounting term that essentially depreciates intangible assets such as intellectual property or loan interest over time. Depreciation is often what people talk about […]
Yes, receipt books are still used and relevant today, even with the advancements in invoicing and POS systems. It is always good for a business with a brick-and-mortar setup to have a receipt book handy in case any of its receipt processing technology fails. Some common places where you will find receipt books being used […]
